European parliament car-emission plans overstep mark – analyst

The new CO₂ limits for passenger cars proposed by the European Parliament’s environment committee are going too far, Deutsche Bank analyst Eric Heymann says in a research note. Obviously, the committee was betting on a break-through of electric vehicles when it set the target to cut emissions by 20 percent by 2025 compared to 2021 and 45 percent by 2030 as such reductions were impossible with combustion engines, Heymann says. “It may sober or even frustrate ecologically oriented NGOs as well as some politicians and media, who frequently praise the benefits of e-mobility. But fact is that the average car buyer is not yet convinced of e-mobility.” Ultimately the committee’s plans amounted to climate policy with a sledgehammer, Heymann writes. Emissions could be reduced at lower cost in other sectors, so overly strict emission limits for cars would unnecessarily drive up the cost of climate action for the overall economy and for businesses, he says.

Find the research note in German here.